Expert: Doctor Settlement - 8/22/2008

Question
I live in California and was involved in a multi-car accident while stopped at a light.  The responsible party failed to stop in time and crashed into the car stopped behind me.   The damage to my car was significant ($35k; car’s value was probably $37k at time of accident).  Unfortunately, as a result of a low initial repair estimate, my insurance company decided to repair the car instead of totaling it.  My car is now repaired and I am planning to seek compensation for my car’s diminished value (I have had the car appraised after the repairs were completed).  My insurance company is not willing to honor a diminished value claim and have asked me to seek compensation from the responsible party.  Assuming the responsible party’s insurance company will even acknowledge the diminished value claim (this is a big “if”), I run into a problem of insufficient coverage (the responsible party only has $25k of coverage), which means I would have to sue the responsible party and/or the responsible party’s insurance company to be made whole.

Questions:
1) Is the approach outlined above the correct approach?
2) Should I sue both the responsible party as well as the responsible party’s insurance company?
3) Is there anything else I am missing?

Thanks in advance.  

Answer
Hi Tony,

Diminished value claims are allowed in California versus BOTH the tortfeasor AND in the first party claim (i.e. your own insurance).  You might call your state insurance commissioner http://www.settlementcentral.com/links.php to be sure of that.  

In any event, you have remedies versus both the third party AND your Underinsured Motorist coverage if the tortfeasor's Property Damage limits are insufficient.  

Hence: NO, you do not sue the tortfeasor; you claim under your UIM coverage.  Second, if you do sue anyone, it is just the tortfeasor, not his company.  You have no cause of action versus them.  

Here is a collection of pages dealing with property damage and diminished claims information that will help you.  

FAQ: Diminished Value Insurance Claims http://www.settlementcentral.com/page0454.htm Explained in Answers by Doctor Settlement, J.D.-Auto Accident Insurance Claim Expert

Diminished Value-What it is http://www.settlementcentral.com/page0455.htm How to Make an Insurance Claim for a Cash Insurance Settlement

Auto Accident Collision Repair Shops & Insurance Adjuster Relationships http://www.settlementcentral.com/page0456.htm Explained in Answers by Doctor Settlement, J.D.-Auto Accident Insurance Claim Expert

Hire YOUR OWN Auto Collision Repair Expert for Repair Negotiations & Supervision—http://www.settlementcentral.com/page0457.htm Diminished Value Insurance Claim Settlements

Bottom line, call the state insurance commissioner's office and then MAKE A WRITTEN DEMAND on your company for the losses you have suffered.  Let them deny you in writing and give a reason for it.  What are you paying premiums for is a question to ask.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
Www.SettlementCentral.Com